Kathryn Rem: Housewares industry feels the pinch

Although it’s not as splashy as the auto industry or the world of finance, the housewares industry is also taking a hit in the challenging economic climate.

Kathryn Rem

Although it’s not as splashy as the auto industry or the world of finance, the housewares industry is also taking a hit in the challenging economic climate.

Americans are buying fewer soup spoons, martini glasses and can openers, said Peter Goldman, president of the home section of consumer research firm NPD Group.

“Managing the housewares business in the midst of a tumultuous economy is no doubt a challenge,” he said in a news release, citing a credit crunch, up-and-down gas prices, home foreclosures and growing unemployment.

Sales of small appliances fell by 6 percent in the first six months of 2008, and, within that group, kitchen electrics were most affected, with a 13 percent falloff. Personal-care products, such as shavers and hair dryers, were down 6 percent, while sales of home products, such as wine racks and clocks, were flat during the same period.

Among the bright spots in the housewares industry in the first half of this year was the canister vacuum, with dollar sales up 12 percent over last year. Goldman noted that new canister vacs are giving customers convenience, functionality and design, which entice on multiple levels.

Another star performer is the once-lowly rice cooker, with dollar sales up 14 percent. Innovation has turned this once single-task appliance into one with features that allow steaming of vegetables and other foods.

Sales of cast-iron cookware have been rising, too, up 20 percent in the past year. Goldman calls the sturdy cookware a “crowd pleaser,” citing the introduction of pre-seasoned skillets, the increasing appearance of cast iron on TV cooking shows and its reputation as a healthy way to cook. Cast iron also lasts a long time.

In the coming year, consumers should expect to see more sales promotions, rebates and new houseware products, according to The International Housewares Association, an industry trade group.

Kathryn Rem can be reached at (217) 788-1520 or kathryn.rem@sj-r.com.

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